Problem 14-77 (LO. 8, 9, 10) Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss? If an amount is zero, enter "0". a. Unimproved land adjacent to the store was condemned by the city on February 1. The condemnation proceeds were $15,000. The land, acquired in 1987, had an allocable basis of $40,000. Larry has additional parking across the street and plans to use the condemnation proceeds to build his inventory. There is a of $ that is treated as b. A truck used to deliver trampolines was sold on January 2, 2020 for $3,500. The truck was purchased on January 2, 2016, for $6,000. On the date of sale, the adjusted basis was zero. There is a of $ that is treated as c. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully depreciated. There is a of $ that is treated as
Problem 14-77 (LO. 8, 9, 10) Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss? If an amount is zero, enter "0". a. Unimproved land adjacent to the store was condemned by the city on February 1. The condemnation proceeds were $15,000. The land, acquired in 1987, had an allocable basis of $40,000. Larry has additional parking across the street and plans to use the condemnation proceeds to build his inventory. There is a of $ that is treated as b. A truck used to deliver trampolines was sold on January 2, 2020 for $3,500. The truck was purchased on January 2, 2016, for $6,000. On the date of sale, the adjusted basis was zero. There is a of $ that is treated as c. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully depreciated. There is a of $ that is treated as
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Problem 14-77 (LO. 8, 9, 10)
Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions
occurred. For each transaction, what are the amount and nature of recognized gain or loss?
If an amount is zero, enter "0".
a. Unimproved land adjacent to the store was condemned by the city on February 1. The
condemnation proceeds were $15,000. The land, acquired in 1987, had an allocable basis of
$40,000. Larry has additional parking across the street and plans to use the condemnation
proceeds to build his inventory.
There is a
of
that is treated as
b. A truck used to deliver trampolines was sold on January 2, 2020 for $3,500. The truck
was purchased on January 2, 2016, for $6,000. On the date of sale, the adjusted basis was
zero.
There is a
of $
that is treated as
c. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The
rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully
depreciated.
There is a
of $
that is treated as](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd286df05-0dfe-4ee1-a07e-fa0164a24092%2F30f97e94-5877-4a15-ada5-6e7c324cdb61%2Fm3d4w_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 14-77 (LO. 8, 9, 10)
Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions
occurred. For each transaction, what are the amount and nature of recognized gain or loss?
If an amount is zero, enter "0".
a. Unimproved land adjacent to the store was condemned by the city on February 1. The
condemnation proceeds were $15,000. The land, acquired in 1987, had an allocable basis of
$40,000. Larry has additional parking across the street and plans to use the condemnation
proceeds to build his inventory.
There is a
of
that is treated as
b. A truck used to deliver trampolines was sold on January 2, 2020 for $3,500. The truck
was purchased on January 2, 2016, for $6,000. On the date of sale, the adjusted basis was
zero.
There is a
of $
that is treated as
c. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The
rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully
depreciated.
There is a
of $
that is treated as
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education